Massive-scale campaign to save energy in households by replacing incandescent bulbs with LED lights
Summary
The government-run Domestic Efficient Lighting Programme (DELP) has sold 800 million LED bulbs in just 3 years since early 2015 through a non-subsidy, demand-driven campaign to replace traditional incandescent bulbs with highly energy efficient LED-bulbs. The program leverages large-scale procurement through an open tender process which has driven down prices by 87%. The cheap bulbs are then sold to consumers through public energy companies at low initial price and subsequent monthly installments paid over the electricity bill. The large-scale procurement has helped develop a large LED-bulb manufacturing industry in India.
| Sector | Energy Efficiency |
| Sub-sector/ Technology | LED lightning |
| Climate Action | Mitigation |
| Elements | State-run campaign, large-scale tender-based procurement from private companies, selling of LED bulbs to consumers through public energy companies in installments. |
| Applicability | Energy service companies, states, cities, utility companies |
| Barriers | Political will, government funding for establishment and administration, pushing private bulb vendors out of market. |
Full Story
The Domestic Efficient Lighting Programme (DELP) was launched in early 2015 as a state-run campaign to encourage a demand-driven shift from traditional incandescent light bulbs to more energy efficient LED bulbs.
According to Piyush Goyal (former Minister of Coal, Power, and New and Renewable Energy), by January 2018, 3 years after the launch of the programme, some 800 million LED bulbs have been sold at non-subsidised prices that has gone down 87% since the launch of the programme. For example, the government was able to buy LED bulbs at 0,60$ pr. unit by procuring 50 million units from Philips. The estimated energy saving from this shift have reduced GHG emissions with 112 billion Ton CO2 pr. year, and 20GW electricity generating capacity has been avoided. Savings to consumers amount to 6 billion $ pr. year and the total cost to the Indian government has been less than 1 billion $. (Min. Goyal at the World Economic Forum, January 2018).
This enormous energy saving can be achieved when e.g. a 60W incandescent bulb is replaced by a 7W LED bulb which emits about the same amount of light.
The program is not a subsidy scheme but rather relies on making LEDs affordable by large-scale procurement from private manufacturers through competitive tenders which pushes down prices. The cheap LED bulbs are then sold by the state enterprises to private consumers at an initial small part of the price, and the rest paid through a monthly instalments through the electricity bill. The consumers register through the campaign website or by sending a SMS. The bulbs are also covered by a 3-year warranty.
The programme is led by Energy Efficiency Services Ltd (EESL), a public joint venture energy services company (ESCO) under the Ministry of Power between state-run firms: NTPC, Power Finance Corporation, Rural Electrification Corporation Limited and Power Grid Corporation Limited. Through EESL, the government procures LED bulbs through competitive bidding and then distributes them to consumers at attractive prices.
One of the criticisms of the programme is that the active government procurement and the availability of cheap LED bulbs from the state enterprises, has taken the market from private vendors who cannot compete with the prices offered.
Also, the official energy saving estimates may be inaccurate, as the actual saving depends on which type of bulbs is actually being replaced and also on how many hours the lamps are used per day. The assumptions used by the government to estimate the power savings may be overly optimistic, but even if the actual power saving is significantly less than claimed, it is still an important energy saving with positive implications for GHG emissions from power generation. Through its pure scale of procurement of LED bulbs, the programme has had a significant effect in lowering the prices of LED’s and has developed a major LED-producing industry in India, actively supported by the Indian state through the “Make in India” campaign.
The Street Ligtning National Programme has targeted replacement of street lightning with LED bulbs in many cities and similar initiatives are underway for residential fans and agricultural pumps. The model has inspired similar initiatives in other countries.
For more information:
Description of the programme from the EESL (Energy Efficiency Services Limited)
Photo top: eeslindia.org, bottom: Businessworld.in
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Very encouraging. Ethical business can be profitable, without gouging the poorest on Earth. Thank God for ethical business-persons raised in India, non-migrating Western wannabees (without priding themselves on Indian culture and mores), who may NOT always WANT to do good, but the culture insists upon “giving to community.” Sadly, the more educated we become, the less “community spirit” remains in us. Jesus help us, Help Thy Creation. amen (Dr. Anil Deo, pastor, but proud to be Indian South African)